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ASIC NRE Costs Not Justified for Many Applications Forecast: By 2010, a complex ASIC will have an NRE Cost of over $40M = $28M (NRE Design Cost) + $12M (NRE Mask Cost) Many “ASIC” applications will not have the volume to justify a $40M NRE cost e.g. a $30 IC with a 33% margin would require sales of 4M units (x $10 profit/IC) just to recoup $40M NRE Cost